🚗 Magnificent 7 Losing Their Magnificence?

[] [The daily rundown of everything happening at Option Pit.]( [( MARK-et Open Hey OP Crew, Griff here with today’s Chart of the Day. This is a big week for the “Magnificent 7” (MSFT, AAPL, NVDA, AMZN, TSLA, META, and GOOGL) as the group’s market cap weighting within the NASDAQ 100 index will be drastically reduced while other stocks in the index will be increased. This will take place after the close on Friday, July 21, which is also monthly option expiration (OpEX). Probabilities favor a decent pullback for the group beginning later this week and carrying into next week. The Micro Sector FANG ETN (Ticker: FNGS) holds the 7 stocks and is an ideal ETF for a bear strategy into next week. [ Notice the classic RSI reversal pattern above. Consider pairing an FNGS bear with favored non-mega-cap value stocks to isolate the rebalancing event. Plan the trade, trade the plan … Let’s Go! [ [ - OPTION SHOPPER: CCL Jul21 18 puts closed for a 73% gain - OPTION SHOPPER: PFE Jul28 35.5 calls closed for a 9% gain - TRADING DESK: SPY, UVXY Jul14/Jul21 436/444 strangle, 18.5 puts closed for a 96% gain Want to find YOUR winning fit? Give our Customer Care Team a call at 1-888-8772-3301 Monday-Friday from 9 a.m.-5 p.m. EST. Or email them anytime at [support@optionpit.com](mailto:support@optionpit.com?subject=) Power Income: Stocks to Watch in a Wild Week Ahead The bull run is broadening and continues to move up and to the right on the charts. It was another strong week for the S&P 500 Index (Ticker: SPX) with a 3% rise. However, the Invesco QQQ Trust ETF (Ticker: QQQ) and Russell 2000 ETF (Ticker: IWM) were even stronger with 5%+ returns for the week. However, this week the markets will have to deal with a Special Rebalancing of the NASDAQ index AND another critical monthly option expiration (OpEx), which once again will come at extreme levels of rally. [Today, we’ll tee up the issues to focus on and hot stocks to watch this week.]( - Griff AG's Views: JPMorgan at Six Month Highs From the Desk of Option Pit Director of Education Andrew Giovinazzi Banking Crisis, what stinking banking crisis? The best run bank in the world is trading at 6 month highs with slew of bank earnings to come. I don't know about you, but banks rallying are good for stocks in general. The Invesco QQQ Trust (Ticker: QQQ) could cause some headaches in Big Tech but banks usually do better in mayhem. [ I am running a long BankAmerica Corp (Ticker: BAC) strangle out to Dec in the [Easy Trade Button](. If the earnings are anything like JPM, looking somewhere over $31. -AG OPTION PIT GLOSSARY [( There are plenty of terms in the trading world that need defining. The [Option Pit Glossary]( is here to help. Today's phrase is: Big-cap - These are large market capitalization stocks with a value typically more than $100 billion. Most of these stocks are in the Dow, S&P 500, and NASDAQ 100 stock indexes. [( DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk. DISCLAIMER: OPTION PIT LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. 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